Village Capital Corporation: Cleveland s Neighborhood Bank. Ohio Land Bank Conference- September 22, 2015

Transcription

1 Village Capital Corporation: Cleveland s Neighborhood Bank Ohio Land Bank Conference- September 22,

2 Cleveland Neighborhood Progress is a family of organizations: Parent Company: Neighborhood Progress, Inc. DBA Cleveland Neighborhood Progress NVC Real Estate Development Subsidiary VCC Real Estate Lending Subsidiary (Community Development Financial Institution (CDFI) 2

3 Edgewood Park Edgewood Park, located in the Slavic Village neighborhood of Cleveland, is a Permanent Supportive Housing Project that provides affordable, supportive housing to homeless individuals with disabilities. 3

4 Permanent Financing Structure Sources & Uses EDGEWOOD PARK New Con Multi-Family Units (71) Property transferred from Cleveland Land Bank to Cleveland Housing Network (nonprofit) Developer-Cleveland Housing Network Property Mgr-EDEN Syndicator-Enterprise Community Investment Sources: Uses: LITC/Equity 7,492,348 Acquisition 281,100 City of Cleveland HOME Loan 930,000 Site Improvements 200,000 Cuyahoga County HOME Loan 270,000 Construction 7,583,634 Federal Home Loan Bank AHP Loan 900,000 FF&E 150,000 AHP Sponsor Grant 10,000 Architecture & Engineering 442,014 OHFA Gap Financing Award 750,000 Financing Fees, Legal & Interest 535,100 Supportive Housing Program Grant 350,000 Miscellaneous Soft Costs 1,740,500 Mental Health Board Grant 200,000 Deferred Developer Fee 0 Total Sources 10,902,348 Total Uses 10,932,348 4

5 Questions? Please contact us: Dione Alexander, Sr. VP of Lending Jeanine Colozza, Sr. Loan Officer (216) Don Pattison, Business Development Officer

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7 Who We Are? The Economic and Community Development Institute (ECDI) provides education, mentoring and small business loans to anyone interested in starting or expanding their current business Our goal is to help individuals succeed as small business owners and create jobs that keep dollars local and bolsters the economy ECDI is the 3 rd largest SBA micro-lender in the US SBA micro loan intermediary lender and certified Community Development Financial Institution covering 88 counties in OH Since 2004, ECDI has helped + 5,000 entrepreneurs, for a total of $25 million loaned, 4,500 jobs created

8 How We Help Our suite of services include: INVEST Small business loans up to $350,000 Individual development-matched savings accounts (IDA) EDUCATE One-on-one business mentoring Classes to meet the needs of entrepreneurs SBA-funded Women's Business Center INNOVATE Fully operational food commissary and kitchen SEA Change Social Enterprise Accelerator Entrepreneurial development with partners

9 Eric Diamond Executive Vice President of Lending (216) Euclid Ave. Ste. 620 Cleveland, OH #ECDIworks

10 Finance Fund

11 Finance Fund & Finance Fund Capital Corporation Finance Fund: A statewide nonprofit Community Development Financial Institution (CDFI) Established in 1987 to promote economic revitalization and community development Support the Community Development Corporation (CDC) network in Ohio Provide access to capital for small businesses, health care, healthy foods, commercial real estate development

12 What we do Finance Fund: Bring resources to urban and rural communities Support a wide array of projects in: Economic Development Community Development Commercial Real Estate Development Small Business Healthy Care Financing Healthy Foods Financing Initiative

13 What we do

14 PROGRAMS FOR COMMERCIAL DEVELOPMENT Pre-Development Grant Program Economic Development Grant Program Small Business Financing New Markets Tax Credits

15 PREDEVELOPMENT GRANTS Funding for early stage costs associated with developing or evaluating feasibility of a project. Up to $30,000 grant Eligible Uses Soft preconstruction costs including: Feasibility & Market Studies Business Plans Architectural Drawings Engineering Environmental Professional Fees

16 ECONOMIC DEVELOPMENT GRANTS Project Funding for community-based nonprofit CDCs creating long-term private sector jobs to strengthen area s economic base. Up to $150,000 grant Eligible Uses Hard construction costs and fixed assets including: Real Estate Acquisition Hard Construction Machinery/Equipment Purchase of Furniture/Fixtures

17 SMALL BUSINESS LOAN FUND Eligible Borrowers: For-profit and nonprofit businesses who have an established financial history Eligible Uses: Real Estate Machinery/Equipment Limited working capital (secured with fixed assets)

18 LOAN DETAILS Average Loan Amount $200,000 - $400,000 Rate Competitive, fixed Term/Amortization Up to 10 years for long-term fixed assets and up to 25 years for owner-occupied real estate.

19 SBA COMMUNITY ADVANTAGE PROGRAM Eligible Borrowers: For-profit businesses who have an established financial history Loans up to $250,000 Eligible Uses: Real Estate Machinery/Equipment Limited working capital

20 NEW MARKETS TAX CREDIT PROGRAM Support job creation and revitalization in eligible low income census tracts Funded by tax credits sold to investors in projects Tends to be larger scale real estate development Strong but for test Project Size: $10 million to $30 million New Markets Investment Size: Tends to be 30% of total project size Depends on project readiness and investor interest

21 Contact Information Mark Barbash Executive Vice President / Strategic Initiatives markbarbash@financefund.org Tara L. Campbell Vice President of Lending 175 S. Third Street, Suite 1200 Columbus, Oh tcampbell@financefund.org x5047